ISE Launches the First Cloud Computing ETF

The International Securities Exchange said it launched the first ETF that tracks companies actively involved in the emerging cloud computing industry.

Launched with ISE Trust Advisors LP, The First Trust ISE Cloud Computing Index Fund (Ticker: SKYY) is based on the ISE Cloud Computing index (CPQ), a new benchmark for this growth sectors that includes three type of firms: companies that are direct service providers for the “cloud;” firms that provide goods and services in support of the cloud computing space; and technology conglomerates whose business model uses or supports cloud computing technology.

Commenting in today’s release, Kris Monaco, ISE’s head of new product development, said: "The ISE Cloud Computing Index reflects the evolution of technology infrastructure and provides new and dynamic opportunities for investors." "We are very pleased to partner again with First Trust to launch this unique exchange-traded fund focused on this rapidly expanding industry," stated Monaco in the release.

"Cloud computing is projected to be one of the fastest growing IT markets this year, according to IDC Research," said Ryan Issakainen, Vice President, ETF Strategist, quoted in today’s release.

"As businesses and consumers continue to migrate to a cloud environment, we believe there are significant growth opportunities for the companies involved in all aspects of cloud computing.

The ETF provides a way to gain diversified exposure to those companies. Forrester Research is projecting total public cloud revenues to go up 27% annually to reach nearly $160 billion by 2020, up from $15 billion in 2010." The First Trust ISE Cloud Computing Index Fund is the ninth ETF that First Trust has launched based on an ISE index. Total assets under management for this portfolio of ETFs was $1.2 billion as of June 30, 2011.

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